Yardley CPA Posted March 19, 2016 Report Share Posted March 19, 2016 Client received 1099 R in the amount of $765 from NYC Employee Retiree System representing income from his Mother-in-Law's estate. 1099 R is in the Mother in Law's SSN. The final estate return was filed four years ago and there has been no activity since that time. Client contracted the NYC Employee Retiree System and they indicate the distribution is correct. Client would like to include this on his return? Not sure that iis correct? Any thoughts? Quote Link to comment Share on other sites More sharing options...
Jack from Ohio Posted March 20, 2016 Report Share Posted March 20, 2016 Tell him to put it in the file with the Estate return and have a good night's sleep. 1 Quote Link to comment Share on other sites More sharing options...
Terry D EA Posted March 20, 2016 Report Share Posted March 20, 2016 Is there any chance the estate return was NOT marked as final? That would simplify things if so. The only other thought is the possibility of having to amend the estate returns and the bene's as well. 1 Quote Link to comment Share on other sites More sharing options...
Yardley CPA Posted March 20, 2016 Author Report Share Posted March 20, 2016 Thanks for the replies. Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted March 20, 2016 Report Share Posted March 20, 2016 Clear up one question, please. Did they receive the cash, as well as the 1099R? 1 Quote Link to comment Share on other sites More sharing options...
Yardley CPA Posted March 20, 2016 Author Report Share Posted March 20, 2016 Yes, they did receive the cash as well as the 1099-R. Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted March 20, 2016 Report Share Posted March 20, 2016 Gee, for such a small amount, it would be so tempting to just follow Jack's advice. But the fact that the client did not make that choice, but brought it to you, means you have to deal with it. After all, should this not be handled properly, the IRS can come after the executor. Would they, over such a tiny amount? Highly doubtful. So my next question is, who got the money? If there is only one bene, I'd show it on his return, on line 21, as nominee. If there were more than three, who each got their share, I'd follow Jack's plan. Either way, I would not try to revive the estate for that amount. 3 Quote Link to comment Share on other sites More sharing options...
Yardley CPA Posted March 20, 2016 Author Report Share Posted March 20, 2016 KC...thanks very much for your input. The funds were distributed to the clients wife. She in turn cut a check to each of her two sisters for $255 each. Maybe its best to place $255 on line 21 for my client? 1 Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted March 20, 2016 Report Share Posted March 20, 2016 Yes, that's what I'd do. But I'd put the whole amount, as 'received from Estate of ....' then subtract the payments off as 'paid to bene...' If that confuses the IRS, they will send the client a letter, you respond with the simple explanation, and that ends it. Most likely you never hear a peep about it. But everything has been disclosed so your client is in the clear. 2 Quote Link to comment Share on other sites More sharing options...
jasdlm Posted March 20, 2016 Report Share Posted March 20, 2016 How did they manage to negotiate the check? I agree to treat it as KC suggests, but I am surprised that they did not have to reopen the estate to negotiate the check if it was made payable to the estate. The bank must not have been paying attention. Very lucky! 2 Quote Link to comment Share on other sites More sharing options...
Roberts Posted March 21, 2016 Report Share Posted March 21, 2016 18 hours ago, Yardley CPA said: KC...thanks very much for your input. The funds were distributed to the clients wife. She in turn cut a check to each of her two sisters for $255 each. Maybe its best to place $255 on line 21 for my client? That's what I would do and make notes of it for your records. If you are like me, in 2 years if the IRS sends them a letter, you won't remember any of this. Quote Link to comment Share on other sites More sharing options...
Roberts Posted March 21, 2016 Report Share Posted March 21, 2016 17 hours ago, jasdlm said: I agree to treat it as KC suggests, but I am surprised that they did not have to reopen the estate to negotiate the check if it was made payable to the estate. The bank must not have been paying attention. Very lucky! From my experience, if the names are similar and you write "For Deposit Only" on the back, the bank will never notice. Had a client who went to the bank teller to ask how to cash it - the bank came up with 2 pages of instructions that would have cost in legal fees more then the amount of the check. I told them to write the For Deposit Only and go through the drive-through or ATM and do NOT try and cash it directly. Zero problems. 1 Quote Link to comment Share on other sites More sharing options...
RitaB Posted March 21, 2016 Report Share Posted March 21, 2016 20 hours ago, kcjenkins said: Gee, for such a small amount, it would be so tempting to just follow Jack's advice. But the fact that the client did not make that choice, but brought it to you, means you have to deal with it. This is so true. Just like my client today that told me she closed her business March 15, then she said she was working from home. So you relocated your business? You need to decide whether you are closed or not and tell me next month when I do sales tax. Tell me you closed or did not close, but don't leave it up to me, and don't contradict yourself. 2 Quote Link to comment Share on other sites More sharing options...
GeneInAlabama Posted March 22, 2016 Report Share Posted March 22, 2016 On 3/21/2016 at 9:13 AM, Roberts said: From my experience, if the names are similar and you write "For Deposit Only" on the back, the bank will never notice. Had a client who went to the bank teller to ask how to cash it - the bank came up with 2 pages of instructions that would have cost in legal fees more then the amount of the check. I told them to write the For Deposit Only and go through the drive-through or ATM and do NOT try and cash it directly. Zero problems. On three different occasions I have received checks that were not signed and I went ahead and deposited them anyway and they went through. Never heard a thing from them. My daughter wrote a check one time and signed her first name as "Gina" instead of "Regina" as shown on her account and the check was sent back. Depends. . . 2 Quote Link to comment Share on other sites More sharing options...
Roberts Posted March 22, 2016 Report Share Posted March 22, 2016 My deposit slips don't have my corporate name on them. I've never had a teller require the corporate name on them in over 10 years until the current one employed by my bank. About 1/2 the time she declares the deposit slip is in violation of the rules and I must write the corporate name on the deposit slip. The other 1/2 of the time she ignores it also.The other 2+ dozen tellers over the years all just ignored it. One even commented how nice and clean the deposit slip was. 1 Quote Link to comment Share on other sites More sharing options...
michaelmars Posted March 22, 2016 Report Share Posted March 22, 2016 Citibank doesn't even use deposit slips anymore, you hand the stack to the teller or slide the stack into the atm machine. you can also take a picture of the check and get it deposited that way. 1 Quote Link to comment Share on other sites More sharing options...
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